Gentleman Gym just paid its annual dividend of $5 per share, and it is widely expected that the dividend will increase by 5% per year indefinitely.
a. What price should the stock sell at if the discount rate is 20%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Stock price $
b. What price should the stock sell at if the discount rate is 12%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Stock price $